In a relief to the Cooperative Rabobank, the Bombay High Court directed the Income Tax Commissioner to issue a fresh Form-3 under the Direct Tax Vivad Se Vishwas Scheme (DTVSV Act).
The Petitioner Cooperative Rabobank is a bank established in the Netherlands and it is a part of the Rabobank Group worldwide. It is submitted that Petitioner is a regular assessee under the Income Tax Act, 1961.
The Petitioner made a declaration in Form-1 along with Undertaking in Form-2 according to the provisions of the DTVSV Act and the Rules thereunder indicating that an Appeal was pending in the Tribunal, which was filed by the Department and there was no application pending on behalf of Petitioner. In the said declaration, Petitioner had indicated an amount payable under the DTVSV Act as Rs.7,50,014/-, which was 50% of the disputed tax. Thereafter, Form-3 was issued by the Designated Authority indicating the amount payable as Rs.15,00,029, which was 100% of the tax arrears, whereas the amount payable indicated by the taxpayer was Rs.7,50,014/-.
The Petitioner filed a rectification application before the Designated Authority explaining as to how the Appeal, that was pending before the ITAT, was the Revenue’s Appeal and not Petitioner’s Appeal. Once again on 26th March, 2021, a revised Form-3 was received determining the amount payable at 100% of the tax arrears, instead of 50% as claimed by Petitioner.
The division bench of Justice Abhay Ahuja and Justice Sunil P. Deshmukh after hearing Mr. Percy Pardiwalla, Senior Advocate for Petitioner pointed out that the objective of the Scheme is to not only benefit the taxpayer, but also the Revenue’s collection.
The court quashed and set aside Form-3 dated 26th March, 2021 issued by Respondent for Assessment Year 2002- 2003. The court further directed Respondent to issue fresh Form-3 within two weeks from the date of pronouncement of the judgment.
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